1981-162-Approving Agreement With San Jose Water Works For Installation Of Water FacilitiesRESOLUTION NO. 1981 -162
RESOLUTION APPROVING AGREEMENT WITH
SAN JOSE WATER 14ORKS FOR INSTALLATION
OF WATER FACILITIES ( KNOWLES DRIVE
ASSESSMENT DISTRICT).
RESOLVED, by the Town Council of the Town of Los Gatos, County of
Santa Clara, State of California, that the TOWN OF LOS
that agreement entitled, "AGREEMENT FOR INSTALLATION 0
TOWN OF LOS GATOS, KNOWLES DRIVE ASSESSMENT DISTRICT ",
attached hereto, and that the Mayor is authorized, and
directed, to execute said agreement in the name and in
OF LOS GATOS.
GATOS enter into
WATER FACILITIES,
a copy of which is
he is hereby
behalf of the TOWN
PASSED AND ADOPTED at a regular meeting of the Town Council of
the Town of Los Gatos held on the 20th day of July , 1981, by
the following vote:
AYES: COUNCIL MEMBERS Thomas J. Ferrito. MarLvn J. Rasmussen. Brent
N. Ventura and Peter W. Siemens
NOES: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS None
ATTEST:
COUNCIL MEMBERS
SIGNED:
Ruth Cannon
6 ERK OF THE TOWN: LOS GATOS
C
AGREEMENT FOR INSTALLATION OF WATER FACILITIES
TOWN OF LOS GATOS - KNOWLES DRIVE ASSESSMENT DISTRICT
This agreement is made and entered into, effective upon the
last date this document is signed by the parties hereto, by and
between the TOWN OF LOS GATOS, a municipal corporation of the State
of California, (hereinafter called "TOWN "), and SAN JOSE WATER
WORKS, a California corporation, (hereinafter called "UTILITY ").
W I T N E S S E T H:
RECITALS:
A. The Town Council of Town, pursuant to the provisions of
the Municipal Improvement Act of 1913, adopted a Resolution on
January 21, 1980, for the formation of special assessment district
designated as "Knowles Drive Assessment District ", (hereinafter
called the "DISTRICT "), to accomplish, among other things, the
installation of a water supply service consisting of water mains,
fire hydrants, valves, meters, services, connectors, and related
facilities.
B. The water facilities contemplated for construction and
installation within the District are shown and depicted on the sketch
attached hereto, marked Exhibit "A ", and by this reference made a
part hereof, and include services (including service pipes, fittings,
gates and housings therefor, meter boxes and hydrant connections) to
be installed in accordance with the approved Plans and Specifications,
and are hereinafter referred to as the "Facilities ".
C. Under the special assessment district proceedings referred
to above, said Facilities are to be constructed by UTILITY.
D. Pursuant to the provisions of Section 10111 of the Streets
and Highways Code of the State of California, title to said facilities
shall vest in UTILITY after they have been completed and accepted,
and the same shall constitute a part of its system and at all times
thereafter be used, operated, maintained and managed by it as a
part of such system.
NOW, THEREFORE, for and in consideration of their mutual coven-
ants and agreements, and subject to the terms and provisions herein
contained, the parties hereto do hereby agree as follows:
1. Commission Approval. This Agreement is not made pursuant to
UTILITY'S Main Extension Rule. This Agreement, therefore, requires
specific authorization of the California Public Utilities Commission
for UTILITY to carry out its terms and conditions. UTILITY shall
seek to obtain such authorization.
2. TOWN'S Deposit. UTILITY has made the following preliminary
determinations:
a. The estimated total cost of the facilities, hereafter
referred to as the "estimated cost ", is $75,810.00, of
which $18,190.00 represents the value of needed adjustments
of existing facilities due to improvements.
b. Said $18,190.00 shall not be subject to refund hereunder.
TOWN'S "advance ", subject to refund, is $57,620.00.
TOWN accepts UTILITY'S preliminary determination and will within
thirty (30) days of the date of this agreement, advance to UTILITY
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$75,810.00, but retains the right to approve or reject UTILITY'S
final determination of the cost of the work and the amount of work
subject to refund upon final accounting as provided under Paragraph
"3." below.
3. Installation of Facilities. UTILITY agrees that it will,
as soon as necessary materials and labor are available and necessary
Permits, franchises, licenses or other governmental authorizations
have been obtained, commence and prosecute to completion, in accordance
with the timetable to be established by TOWN, the work of installing
the Facilities. UTILITY reserves the right to make such changes
in design or materials as it may deem necessary subject to the prior
approval of TOWN. Within sixty (60) days after UTILITY has ascertained
its actual costs in installing the Facilities, it will provide TOWN
with a statement of the same showing in reasonable detail the costs
incurred for materials, labor, and other direct and indirect costs,
overhead and total costs, or unit costs or contract costs, whichever
are appropriate. If such actual costs as finally determined shall be
greater or less than the estimated costs, the difference shall be paid
by TOWN to UTILITY, or repaid by UTILITY to TOWN, as the case may be.
4. Engineering and Street Grades. TOWN agrees to set stakes on
the street within the limits of the District, as shown on said Exhibit
"A ", and provide UTILITY with finished street grades and typical
cross sections to enable UTILITY to determine a location for the
mains and the depth to which they are to be laid. UTILITY shall
determine the locations and depths of the mains in relation to the
data furnished by TOWN. TOWN shall provide horizontal and vertical
control in the field sufficient to allow UTILITY to proceed with the
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installation of Facilities.
5. Operation of Facilities. Upon completion of the Facilities
and acceptance thereof by TOTVA -, and subject to all of the terms and
conditions hereof, UTILITY agrees to accept TOWN'S conveyance thereof
in the form hereinafter specified, and thereafter said Facilities shall
constitute a part of UTILITY'S system and at all times thereafter be
used, operated, maintained and managed by UTILITY as a part of such
system in accordance with UTILITY'S applicable rates and rules on file
with and authorized from time to time by the California Public Utilities
Commission.
6. Construction Delay. UTILITY shall not be responsible for any
delay in construction of the Facilities resulting from shortage of labor
or materials, strikes, labor disturbances, war, riots, weather conditions,
governmental rule, regulation or order, including orders or judgments
of any Court or commission, delays in obtaining necessary rights -of -way,
act of God, or any cause or condition of like or unlike characteristic,
which is beyond the control of UTILITY.
7. Refund. UTILITY agrees to :Hake refunds hereunder to TOWN, in
cash without interest for a period not to exceed twenty (20) years from
the date hereof in annual Payments made within forty -five (45) days of the
anniversary of the date- of completion of installation of the Facilities.
Refund shall be determined as follows: UTILITY shall determine the
revenues received by it from customers, including fire Protection
agencies, supplied by service pipes directly connected to the Facilities;
the refund shall be twenty -two (22 %) per cent of the revenue so received.
The total amount,so refunded shall not exceed TOV 'S advance subject
to refund, without interest. The Facilities were designed to serve the
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Exhibit "A" attached hereto. If in twenty (20) years from the date
hereof, eighty (80 %) per cent of the area is developed and is being
served from the Facilities, UTILITY shall so notify TOWN, and at that
time will become obligated to pay TOWN, in cash, any balance of the
advance subject to refund which may remain unrefunded at the end of
said twenty (20) year period. Any such balance shall be refunded in
five (5) equal and annual installments, payable beginning twenty -one
(21) years from the date hereof.
8. Notices. Any notice which it is herein provided may or shall
be given by either party to the other shall be deemed to have been
duly given when deposited in the United States mail, registered or
certified, postage prepaid, and addressed to the party to whom such
notice is given at its following respective address:
To TOWN: TOWN OF LOS GATOS
Public Works Department
P.O. Box 949, 110 E. Main Street
Los Gatos, CA 95031
To UTILITY: SAN JOSE WATER WORKS
P.O. Box 229, 374 W. Santa Clara Street
San Jose, CA 95103
Either party, by notice given as hereinabove provided, may
change its address to which notice shall thereafter be addressed.
9. Assignment. This Agreement shall not be assignable by oper-
ation of law, or otherwise, by TOWN or UTILITY, unless the party
desiring such assignment first obtains the consent thereto of the
other party, and the assignee, in writing, assumes and covenants to
perform all of the obligations that would be transferred by such
assignment.
10. Successors and Assigns
Subject to the provisions of the
preceding Paragraph 10, this Agreement shall inure to the benefit of
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and shall bind the respective successors and assigns of the parties
hereto.
11. Subject to the provisions of Paragraph "3" hereof, in the
event TOWN shall become entitled to a repayment or refund under the
terms of this agreement and at said time a balance is due hereunder to
UTILITY, by reason of the fact that actual costs of construction
exceeded the estimated costs, UTILITY shall be entitled to apply any
such repayment or refund to the payment of said unpaid balance.
12. Jurisdiction of Public Utilities Commission. This Agreement .
shall at all times be subject to such changes or modifications by the
Public Utilities Commission of the State of California as the Commission
may from time to time direct in the exercise of its jurisdiction.
13. No Agreement with Developer. UTILITY agrees that, pursuant
to the provisions of subsection (d) of Section 10110 of the Streets and
Highways Code of the State of California to the extent that the
UTILITY facilities aforesaid have been financed by special assessments,
no main extension refund agreement shall be entered into with any
developer.
14. Sale of Facilities to UTILITY. TOWN shall, upon completion
and acceptance of the Facilities, execute and deliver to UTILITY a
deed of conveyance in the form attached hereto and identified as
Exhibit "B ", conveying the Facilities to UTILITY.
15. Indemnification. UTILITY agrees to indemnify and hold
TOWN harmless from and against any and all damages for injury to
persons or property caused by UTILITY in the construction, reconstruction,
repairs, maintenance, or operation of the Facilities.
Q.
Dated: IL
ATTEST:
�74
CLERK OF THE TOWN OF GATOS
Dated: (4e
TOWN OF LOS GATOS
By z
Mayor
Town.
SAN JOSE WATER WORKS
By 1 2 &
Vice Presideft
By
Secretary
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CONVEYANCE
KNOW ALL MEN BY THESE PRESENTS:
That the TOWN OF LOS GATOS, a municipal corporation of
the State of Claifornia, for good and valuable consideration,
the receipt whereof is hereby acknowledged, does hereby assign,
transfer, sell, and convey to SAN JOSE WATER WORKS, a California
corporation, those certain water service facilities heretofore
installed and constructed for Knowles Drive Assessment District
pursuant to its Resolution adopted on January 21, 1980, in the
approximate locations shown on the sketch marked Exhibit "A" and
made a part hereof, and composed of the facilities particularly
described thereon.
t
Dated:,a.)
ATTEST:
TOWN OF LOS GATOS, a municipal
corporation.
By
r�
CLERK-OF THE TOWN OF L ATOS
EXHIBIT "B" -